He feared that, if this went further, it would not be needful to import silks from Espana.  He says, moreover, that all goods carried from the said islands are mere trifles, from which the land derives no profit—­such as porcelains, escritoires, caskets, fans, and parasols, all flimsy and very unprofitable.  We can trade with the Chinese only with gold and silver, since they have more than enough of everything else.  The letter written to your Majesty by the commander of the fleet which is in Nueva Espana was also examined.  He states therein that the trade in thin fabrics imported from these kingdoms to that land is steadily decreasing, on account of the trade which is carried on there with the Philipinas Islands.  This letter was the occasion for issuing a decree, to which your Majesty was pleased to set your royal hand, calling for a report from the viceroy of Nueva Espana.  This is an affair which requires a much more expeditious remedy.  We have investigated the state of affairs in those regions, of which a detailed report was made to us.  Besides the little value of those wares, a large amount of silver and coin is carried thither in exchange for them.  Although a portion of this money remains in those islands, all the rest is carried away by the Chinese who go thither from the mainland to sell these wares.

In this way the commerce of these kingdoms is falling away, and the bringing of money hither is impeded; both these are matters of consequence and importance.  This is not the way to maintain our trade, since the settlement of the land must be through its richness and fertility, and the prospect of other discoveries that are being made daily, and not through trade.  Those who are engaged in this trade are merely transients, and those islands are merely a place of lading for this commerce; for all, or the greater part, of the merchandise comes from China.  The Spaniards derive two, three, or four thousand ducats from anchorage alone; this is the fee for the privilege of anchoring the ship.  The lure of the cheapness of the merchandise overcomes all other considerations.  This hinders the prosperity of the people, and furnishes them no aid in the most important thing, namely, the settlement of the islands, and the discovery and operation of the gold mines there.  We came to the conclusion that the trade and commerce of the said islands, as far as the said merchandise is concerned, should be abolished, and that these wares should not be carried to Nueva Espana or other parts of the Indias, in order that the trade of these kingdoms—­a most important matter—­may continue.  A communication to this effect should be addressed to the viceroy of Nueva Espana, recounting to him the aforesaid disadvantages; and advising him that, unless he shall encounter other obstacles so great as to prevent him from taking such action, he should prohibit the traffic in the above-mentioned merchandise from China, and order the cessation of such commerce with that country.  If he find too great difficulties in the way, then he should give advice thereof, together with his opinion.  In the meantime, he should make such provision as he shall find most expedient.  To save time, the decree in accordance with this recommendation accompanies the present communication; and it shall be sent by this fleet, if your Majesty will have the goodness to sign it.  Madrid, June 17, 1586.